Research On The Internal Capital Market Allocative Efficiency In Business Group

With the development of market-oriented economy, more and more enterprises begin to implement diversification strategy, enterprise group become the dominant force in the national economy in China. The researchers gradually focused their attention on the efficiency of the enterprise group’s internal capital market. And the excellent function of resource allocation and the role of improving enterprise value also attracting scholars for the further discussion. Throughout the special national condition, private economy is an important pillar industry development in our country, and also a key factor of national comprehensive strength. In the face of financing difficult problems of external market in China, establish an enterprise group has become an important option for the private enterprises in our country. Through in-depth analysis of the possible factors affecting the internal capital market allocation efficiency of private enterprise groups, we found that many affecting factors have been concerned with the governance aspects of the company. So in this article, through the summarize of existing relevant research results, choose the corporate governance as the breakthrough point to select indicators, build a relevant model, and begin an empirical test on the basis of related sample data of the current private enterprise group in 2010-2013.First, begin a comparative analysis of industry and financial indicators between private enterprise group and a single private listed company, Secondly, begin a preliminary test of efficiency of the internal capital market, finally analysis the influencing factors that may affect the efficiency of internal capital market, establish the regression model, using indirect method for multivariate regression analysis. Through the above research, this paper conclude that the private enterprise group’s financial situation is improved, the financing constraint conditions have improved, but through the empirical test, we found that about half of the enterprise group is invalid, that explain the efficiency of internal capital market in private enterprise group’s is too low. And through the empirical analysis we found that the ownership structure, management incentives have relationship with the allocation efficiency of internal capital market, while the board characteristics have no obvious connection with the allocation efficiency of internal capital market, and on this basis we puts forward some relevant policy suggestions.